Weaker consumer interest, particularly in China, has contributed to the company’s decision to curb output.
For Q3 2024, De Beers reported a 25% decline in rough diamond production to 5.6 million carats, compared to the same quarter last year. Production in Botswana, De Beers’ primary source, dropped by 32% to 3.9 million carats, while Namibia and Canada also saw reductions of 14% and 11%, respectively.
In an effort to adapt to market conditions, De Beers has adjusted its approach, consolidating two of its sales events and rescheduling future sales. The company is exploring additional measures with its partners to further scale back production if demand remains sluggish.
Although production was reduced, De Beers’ average realised price for rough diamonds rose by 4% year-over-year due to higher-value diamonds in the sales mix. Nevertheless, sales volumes and revenues were notably down from the previous year.
On the retail side, De Beers Jewellers saw steady demand for design-focused pieces, though macroeconomic challenges continued to weigh on bridal and solitaire sales. Forevermark operations shifted primarily to India, reflecting a strategic emphasis on growth within the region.
